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Financials - June 2023

Greg Flynn goes global with Australian Pizza Hut acquisitionFlynn Restaurant Group is acquiring 260 locations from Allegro Funds, giving the company its first international investment. By Jonathan Maze on Jun. 08, 2023

Greg Flynn is apparently running out of restaurants to buy in the U.S.Flynn Restaurant Group, the massive franchisee of several brands, on Thursday said it is acquiring the master franchise license for Pizza Hut in Australia from Allegro Funds, including 260 locations for the pizza chain in the country. The deal gives Flynn, whose empire includes Applebee’s, Taco Bell, Panera, Arby’s, Pizza Hut and Wendy’s, some 2,600 restaurants that generate $4.5 billion in total sales.“We spent our first 12 years growing in Applebee’s, then the next 12 years diversifying as a domestic franchise operator,” Flynn said in a statement. “In the next chapter, we’re layering on international expansion, and the growth potential is essentially unlimited.”It also gives Flynn a successful group of restaurants. Pizza Hut Australia has generated 50 consecutive months of positive same-store sales growth, generating record revenue in the process. Pizza Hut’s existing management team will continue to run the business.Ron Bellamy, co-chief operating officer for Flynn Restaurant Group, led the acquisition team and will have overall responsibility of the business going forward, the company said.Flynn first acquired Pizza Hut restaurants in 2021 with the acquisition of 900 restaurants owned by the now-defunct NPC International out of bankruptcy. That deal has been cited as a key reason for Pizza Hut’s domestic revival more recently, as it stabilized a large swath of the chain’s locations.In this case, however, Flynn hopes that the addition of the larger franchisee’s resources and capabilities can further Pizza Hut’s growth in a key market. Flynn Restaurant Group “will bring fresh ideas and capital that extend momentum and forge deeper connections with customers in this important Pizza Hut market,” Pizza Hut CEO Aaron Powell said in a statement. The acquisition has to receive approval from the Foreign Investment Review Board in Australia and consent from Pizza Hut parent company Yum Brands. But that is expected by the end of the month.

View source version at Flynn Restaurant Group

FAT Brands Announces Intent to Take Twin Peaks Public

June 6, 2023

Global Restaurant Franchising Company Looks to Unlock Value and Build on Growth of Twin Peaks Restaurant Chain Los Angeles, CA  (  FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) today announced its plans to pursue an initial public offering of its Twin Peaks restaurant business. The transaction is intended to unlock value for FAT Brands’ shareholders by creating a separate publicly traded company and help facilitate continued strong growth of the restaurant chain and market segment. Twin Peaks continues to redefine the sports lodge dining category, most recently opening its 100th location.  Since the acquisition by FAT Brands in October 2021, Twin Peaks’ footprint has continued to grow both in unit count and geographically, and now operates in 26 states and two countries. The brand is slated to open 18 to 20 new lodges in 2023 and expects to end 2023 with approximately 115 lodges, an almost 40 percent increase in unit count since the acquisition. The brand also has a committed development pipeline for an additional 109 franchise locations. Over the next several years, Twin Peaks plans to double its unit count to more than 200 lodges and increase the mix of franchised locations from 70 percent today to more than 80 percent. The planned unit growth is expected to increase systemwide sales to approximately $1.0 billion. “Twin Peaks was an exceptional acquisition for us in 2021,” said Ken Kuick, Co-CEO and CFO of FAT Brands. “Led by veteran CEO Joe Hummel and a seasoned management team, Twin Peaks continues to produce industry-leading average unit volumes, with annual same-store sales increasing by 11.3 percent in 2022.  We believe that creating a separate publicly traded company will provide the best opportunity to further enhance the brand, capitalize on its expansion plans and build upon its position as a leader in the sports lodge dining category.” The timing and size of the transaction to take Twin Peaks public will be subject to market conditions and other factors. FAT Brands plans to remain the majority owner of the new publicly traded company following the transaction. A registration statement has not yet been filed with the U.S. Securities and Exchange Commission. This press release does not constitute an offer to sell or the solicitation of any offer to buy, and there shall not be any sale of, any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. About Twin Peaks Founded in 2005 in the Dallas suburb of Lewisville, Twin Peaks has 100 locations in the United States and Mexico. Twin Peaks is a leading sports lodge-themed restaurant chain featuring made-from-scratch food and 29-degree cold beer, surrounded by scenic views and wall-to-wall TVs. At every Twin Peaks, guests are immediately welcomed by a friendly Twin Peaks Girl and served up a menu made for MVPs. From its smashed and seared-to-order burgers to its in-house smoked brisket, pork and wings, guests can expect menu items capable of satisfying every appetite. For more information about Twin Peaks, please visit About FAT (Fresh. Authentic. Tasty.) Brands FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. The Company currently owns 17 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,300 units worldwide. For more information on FAT Brands, please visit

View source version at FAT Brands


06 Jun, 2023, 08:00 ET

Board declares $1.30 quarterly dividend per shareLEBANON, Tenn., June 6, 2023 /PRNewswire/ -- Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today reported its financial results for the third quarter of fiscal 2023 ended April 28, 2023. Third Quarter Fiscal 2023 Highlights

  1. The Company reported third quarter total revenue of $832.7 million. Compared to the prior year third quarter, total revenue increased 5.4%.

  2. Comparable store restaurant sales increased 7.4%, while comparable store retail sales decreased 4.6%.

  3. GAAP operating income for the third quarter was $16.8 million, or 2.0% of total revenue, and adjusted1 operating income was $33.9 million, or 4.1% of total revenue.

  4. GAAP net income was $14.0 million, or 1.7% of total revenue. Adjusted EBITDA1 was $60.3 million, or 7.2% of total revenue.

  5. GAAP earnings per diluted share were $0.63, and adjusted1 earnings per diluted share were $1.21.

  6. The Company announced that its Board of Directors declared a regular quarterly dividend of $1.30 per share. Commenting on the third quarter results, Cracker Barrel President and Chief Executive Officer, Sandra B. Cochran said, "Our third quarter results included solid comparable store restaurant sales growth of 7.4% compared to the prior year. Although this was below our expectations as a result of the casual dining traffic declines that occurred toward the end of the quarter, I was pleased that we outperformed the Black Box Intelligence Casual Dining Index for the fourth consecutive quarter. Our teams remain focused on operational excellence, staffing and retention, and delivering an exceptional guest experience. Our everyday value and menu innovation is resonating with guests, and we're making great progress on key initiatives including catering, our loyalty program, and cost savings, which we believe will position us well for the long-term as we navigate through the present uncertain environment."

View full version at Cracker Barrel

Subway makes a huge deal to expand in China The sandwich giant signed a 4,000-unit, master franchise agreement with Shanghai Fu-Rui-Shi Corporate Development, its largest such agreement in the brand’s history. By Jonathan Maze on Jun. 06, 2023

Subway is going to sell a lot of footlongs in China. The Miami-based sandwich giant on Tuesday announced the largest master franchise deal in its history, a 4,000-unit, 20-year agreement with Shanghai Fu-Rui-Shi Corporate Development, or FRS. The deal will be funded by a consortium of private investors, including Asia Investment Capital. FRS will open the locations over the next 20 years, increasing Subway’s presence in the market by seven times. The group will also acquire the exclusive rights to manage and develop all the chain’s locations in the country. The master franchisee expects to name a CEO with “significant QSR experience in the Chinese market.” The deal comes as brands continue to push development in the fast-growing market. Popeyes and Papa Johns, among others, have recently announced major expansion deals in the country and existing chains like KFC, McDonald’s and Starbucks continue to develop aggressively in China. For Subway, the announcement is coming at a particularly opportune time, given that the company is nearing the finalization of a sale, reportedly for $9 billion. The company has signed several international development agreements recently as it pushes growth outside the U.S. This is Subway’s 13th master franchise and development agreement signed in the past two years, representing commitments for more than 9,000 restaurants. Subway’s system sales outside the U.S. grew 9.5% last year, according to data from Technomic, and the company increased international unit count by 0.4% to 16,100—the first time in five years that the company has been able to increase international restaurant count. “This agreement is a significant milestone in Subway’s international growth strategy as we continue to focus on strategically expanding our footprint and maintaining our position as one of the world’s largest restaurant brands,” John Chidsey, Subway’s CEO, said in a statement. He called China a “key market with significant long-term growth opportunity.” Subway said its sales have increased in China coming out of the pandemic, largely driven by digital sales and the introduction of new menu items. The company is expecting a much bigger presence in the Asia Pacific region, expecting its unit count there to grow to 6,000 restaurants from 3,500 over the next five years.

View source version at Subway

Corner Bakery accepts $15M bid from SSCP Restaurant Investors

Published June 5, 2023

Julie Littman Senior Reporter

Dive Brief:

  1. Corner Bakery accepted a $15 million bid from SSCP Restaurant Investors that was proposed during an auction last week, according to court documents.

  2. SSCP outbid stalking horse bidder Wexford Capital, which originally proposed buying the chain for $12 million.

  3. SSCP currently operates 80 Applebee’s restaurants and 43 Sonic restaurants, and is the parent company of Cici’s Pizza and Roy’s, according to its website.

Dive Insight: SSCP has experience buying chains out of bankruptcy. Affiliate SSCP Management bought Cici’s in 2021 alongside Gala Capital Partners. SSCP also acquired Corner Bakery’s credit facility at the end of January after each of Corner Bakery’s lenders transferred the rights under the credit facility, according to court documents. After SSCP reviewed financial and business information, it informed Corner Bakery of possible additional events of default. SSCP eventually informed the company that it intended to foreclose on Corner Bakery’s assets. This “discord with SSCP,” along with Corner Bakery’s ailing financial condition, led Corner Bakery to file for Chapter 11 bankruptcy protections in February. Corner Bakery’s financials suffered during the pandemic when it saw “sharp declines in earnings and revenue,” CEO and COO Jignesh Pandya said in a court filing. Office closures were particularly troublesome as the company was heavily reliant on catering for workplaces in addition to breakfast and lunch business from commuters. Even before the pandemic, the company was facing declines in average unit volumes, which led the company to hire restructuring and financial advisors to consider strategic alternatives. In 2020, Pandya Restaurant Growth Brands bought the company, which then focused on various initiatives, including menu development and improving the guest experience, Pandya said. This led to an increase in annual sales of 100%, he said.

View source version at SSCP

CAVA Announces Launch of Initial Public Offering

June 05, 2023 02:11 PM Eastern Daylight Time

WASHINGTON--(BUSINESS WIRE)--CAVA Group, Inc. (“CAVA”), the category-defining Mediterranean fast-casual restaurant brand that brings heart, health, and humanity to food, today announced the launch of its initial public offering of 14,444,444 shares of its common stock pursuant to a registration statement filed with the Securities and Exchange Commission (the “SEC”). CAVA expects to grant the underwriters in the offering a 30-day option to purchase up to an additional 2,166,666 shares of common stock at the initial public offering price, less underwriting discounts and commissions. The estimated initial public offering price is between $17.00 and $19.00 per share. CAVA has applied to list its shares on the New York Stock Exchange under the symbol “CAVA”. CAVA intends to use the net proceeds from the offering to fund future new restaurant openings, with any remaining proceeds for general corporate purposes, which may include the repayment of its delayed draw term loans used to finance construction and capital expenditures in respect of its new production facility in Verona, Virginia. J.P. Morgan and Jefferies are acting as joint lead book-running managers of the offering, and J.P. Morgan, Jefferies, and Citigroup are acting as representatives of the underwriters for the proposed offering. Citigroup and Morgan Stanley are acting as joint bookrunners for the proposed offering. Piper Sandler, Baird, Stifel, and William Blair are also acting as joint bookrunners for the proposed offering. Capital One Securities, Blaylock Van, LLC, and Drexel Hamilton are acting as co-managers for the proposed offering. A registration statement on Form S-1 relating to the proposed offering has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, and shall not constitute an offer, solicitation, or sale in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended. The proposed offering will be made only by means of a prospectus. Copies of the preliminary prospectus related to the offering can be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (866) 803-9204, or by email at; Jefferies LLC, Attn: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone at (877) 821-7388, or by email at; or Citigroup Global Markets Inc., Attn: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY, 11717, or by telephone at 800-831-9146. Forward Looking Statements This press release contains forward-looking statements. Forward-looking statements include all statements that are not historical facts. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and similar expressions are intended to identify forward-looking statements. These forward-looking statements include any statements regarding the commencement of trading of CAVA’s common stock on the New York Stock Exchange. These forward-looking statements, including statements regarding the size and expected price range of the initial public offering, are subject to a number of risks, uncertainties and assumptions, including those described under “Risk Factors” under CAVA’s registration statement relating to the offering. Except as required by law, CAVA has no obligation to update any of these forward-looking statements to conform these statements to actual results or revised expectations. About CAVA CAVA is the category-defining Mediterranean fast-casual restaurant brand, bringing together healthful food and bold, satisfying flavors at scale. Rooted in our rich Mediterranean heritage, we bring a timeless approach to modern wellness through our authentic cuisine and vibrant brand experience. Guided by our mission, we believe food is a unifier for a more diverse and inclusive world for our guests, team members, and our grower and rancher partners, where all are welcome at our table. We believe that consumers should not have to choose between taste and health – our innovative cuisine appeals to a wide variety of preferences, satisfying the modern consumer’s desires for flavorful, craveable, and nutritious food without compromise.

View source version at CAVA

Gen Korean BBQ parent issues IPO

Published June 2, 2023

Julie Littman Senior Reporter

Dive Brief:

  1. Gen Restaurant Group, parent company of Gen Korean BBQ, has filed an initial public offering with a plan to raise $25 million in proceeds from the issuance of Class A common stock, according to SEC filings submitted last week.

  2. Gen Korean BBQ has 32 company-owned restaurants across California, Arizona, Nevada, Hawaii, Texas and New York, according to GRG’s registration statement.

  3. GRG is the second restaurant company to file an IPO this year following Cava, which issued its filing earlier this month.

Dive Insight: GRG will become one of a handful of public Asian restaurant companies trading on the New York Stock Exchange. Last year, Yoshiharu, a California-based Japanese restaurant, went public at $4 per share. Kura Sushi went public in 2019 and raised $41 million on its first day of trading. Kura Sushi also reported same-store sales growth of 17.4% during Q2 2023. Much like Kura Sushi, which rolled out robotic servers nationwide last year, Gen Korean BBQ has a slim labor model. Gen Korean BBQ is a “cook your own” concept where guests cook meat at their tables, allowing for the concept to operate with limited staff. “Since our guests serve as their own chefs and cook the majority of their meals themselves on a grill embedded in the center of each table, they experience minimal wait times once seated, have full control over their portions and are able to grill their food at their desired pace and temperatures,” the company said in its filing. Gen Korean BBQ charges a fixed price ranging from $17.95 to $20.99 for lunch and $25.95 to $29.95 for dinner and allows guests to order unlimited quantities of food, making it “accessible to multiple demographics.” The company said it increased prices modestly in the second half of 2021 and 2022, but didn’t see any significant change in consumer behavior. Gen Korean BBQ plans to analyze and monitor the impact on price on customers, and said there may be opportunities for additional modest price increases in the future with minimal impact on diner traffic. The company has ambitious growth plans. Gen Korean BBQ’s development stalled in 2020 to 2021, but restarted in 2022 once COVID-19 restrictions eased. It has since opened three restaurants and signed leases for nine additional locations. This year, the company plans to open six or seven locations. Its plan is to open eight to 10 restaurants annually in new and existing markets and enter new markets like Oregon, Georgia, Virginia, Utah and Washington, D.C. The company believes it has the potential to reach over 250 locations in the U.S. Gen Korean BBQ’s revenue increased to $163.7 million last year, up 16% from $140.6 million in 2021. Its average unit volume is $6 million and its restaurant-level adjusted EBITDA margin was 20% during the 12 months ending March 31, 2023, the company said in the filing.

View source version at Gen Korean BBQ

Red Robin Gourmet Burgers, Inc. Reports Results for the Fiscal First Quarter Ended April 16, 2023

“North Star” Five-Point Plan Demonstrating Early Traction Comparable Restaurant Revenue(1) Growth of 8.6%, Exceeding Industry Average Company Raises Outlook for Fiscal 2023

May 24, 2023 04:05 PM Eastern Daylight Time

ENGLEWOOD, Colo.--(BUSINESS WIRE)--Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) ("Red Robin" or the "Company"), a full-service restaurant chain serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today reported financial results for the fiscal first quarter ended April 16, 2023. Highlights for the First Quarter of Fiscal 2023, Compared to the First Quarter of Fiscal 2022:

  1. Total revenues are $418.0 million, an increase of $22.4 million compared to 2022.

  2. Comparable restaurant revenue(1) increased 8.6%.

  3. Ninth consecutive quarter of positive comparable restaurant revenue(1) growth.

  4. Comparable restaurant traffic increased 0.6%.

  5. Comparable restaurant revenue(1) and comparable restaurant traffic both exceeded the industry averages as measured by the Black Box Casual Dining index.

  6. Comparable restaurant dine-in sales increased 16.4%.

  7. Comparable restaurant sales for the first thirteen weeks of the quarter increased 10.0%(4).

  8. Net loss of $3.1 million was unchanged compared to 2022.

  9. Income from operations was $4.3 million, or 1.0% of total revenues, compared to $4.4 million, or 1.1% of total revenues, in 2022.

  10. Restaurant Level Operating Profit Margin(2) (a non-GAAP metric) was 14.7% versus 14.0% in 2022.

  11. Adjusted EBITDA(3) (a non-GAAP metric) was $36.1 million, an $8.1 million increase compared to 2022.


Comparable restaurant revenue represents revenue from Company-owned restaurants that have operated five full quarters as of the end of the period presented.


See Schedule II for a reconciliation of Restaurant Level Operating Profit and Restaurant Level Operating Profit Margin, non-GAAP measures, to Income from operations and Income from operations as a percentage of total revenues, respectively.


See Schedule III for a reconciliation of Adjusted EBITDA, a non-GAAP measure, to Net loss.


Comparable restaurant sales for the first thirteen weeks of fiscal 2023 are calculated based on the Company’s point-of-sale sales data, which does not include adjustments for loyalty breakage. G.J. Hart, Red Robin’s President and Chief Executive Officer, said “Our first quarter results are strong and demonstrate the power of the Red Robin brand. We are just getting started with the implementation of our ‘North Star’ plan, and already see higher Guest satisfaction and significant gains in sales and profits. Due to the tremendous efforts of all of our Team Members, we are able to both accelerate investments in people and enhancements to the quality of our food offerings, while also raising our financial guidance for 2023. We are committed to the diligent execution of our strategic plan, and I am more confident than ever in the comeback of this iconic brand."

View full version at Red Robin

Jack in the Box Inc. Reports Second Quarter 2023 Earnings

Jack in the Box same-store sales of +9.5%; +29.3% on a three-year basis

Del Taco same-store sales of +3.2%; +25.5% on a three-year basis(1)

Jack in the Box systemwide sales growth of +9.8%, Del Taco systemwide sales growth of +3.2%(1)

Diluted EPS of $1.27; Operating EPS of $1.47

Jack in the Box added 4 development agreements for 33 future restaurants in Q2, including development agreement for 22 future restaurants in Mexico, totaling 76 agreements for 335 restaurants since program launch

Refranchised 17 Del Taco restaurants subsequent to Q2, which included development agreements for both Jack in the Box and Del Taco to enter Montana and Wyoming for the first time in each brand's history

Management provides updates to FY 2023 guidance and outlook

May 17, 2023 08:30 AM Eastern Daylight Time

SAN DIEGO--(BUSINESS WIRE)--Jack in the Box Inc. (NASDAQ: JACK) announced financial results for the Jack in the Box and Del Taco segments in the second quarter, ended April 16, 2023. "The momentum in our business continued throughout the second quarter, reflected in outstanding sales, positive net unit growth, improved margin performance and the signing of a development agreement for expansion into Mexico," said Darin Harris, Jack in the Box Chief Executive Officer. "Over the last year we have been focused on the execution of our strategy, and the results are beginning to show. We look forward to continued strength in the back half of 2023, while remaining focused on what is most important: expanding our reach, offering guests what they want when they want it, and a relentless pursuit to improve restaurant level economics for Jack and Del Taco franchisees."

Jack in the Box Performance Same-store sales increased 9.5% in the second quarter with franchise same-store sales up 9.4% and company-operated same-store sales up 10.8%. Company-operated restaurants experienced growth in both average check and traffic while franchise restaurants had growth in average check, partially offset by a decline in traffic. Systemwide sales for the second quarter increased 9.8%. Restaurant-Level Margin(2), a non-GAAP measure, was 21.4%, an increase of 6.4% from a year ago driven primarily by strong sales leverage and the sale of two evolving markets. Franchise-Level Margin(2), a non-GAAP measure, was 41.2%, an increase of 1.8% from a year ago, driven by flow through from higher franchise sales, and lower bad debt expense. Jack net restaurant count was positive in the second quarter, with two franchise openings and one franchisee closure. As of Q2, and since the launch of the development program in mid-2021, the company currently has 76 signed agreements for a total of 335 restaurants. Under these agreements, 27 restaurants have opened, leaving 308 remaining for future development. In the second quarter, Jack in the Box also completed a new franchisee development agreement to enter Mexico with 22 restaurant commitments.

View full version at Jack in the Box

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